Ministry Brands, a provider of cloud-based software and payment platforms to almost 100,000 churches and ministries, will spin off as a stand-alone company from parent company Community Brands after a majority investment by a New York- based investment firm.
Community Brands announced that it has signed a definitive agreement with Reverence Capital Partners (RCP) for a majority investment in Ministry Brands. As part of the transaction, Nashville, Tenn.-based Ministry Brands will become a separate company with “material rollover investment” from its former parent.
Additional details of the transaction were not disclosed. This past May, PE Hub reported that Insight Partners was exploring a sale of Ministry Brands, having hired William Blair to advise. According to reporting in PE Hub, Ministry Brands had a close to $100 million run-rate earnings before interest, taxes, depreciation, and amortization.
Brad Bennett, senior director, marketing, association and events, for Community Brands said the shift will enable both Ministry Brands and the remaining divisions in Community Brands to “focus even more on their unique visions.” He declined to disclose employee headcounts within the transaction, instead saying that the future Community Brands organization will focus on the association, nonprofit, K-12 schools, and event businesses.
Ministry Brands was founded in 2012 by Ross Croley of Greater Sum Ventures in Knoxville, Tenn., as a point solution provider of church websites and digital donations. More than 95,000 faith-based organizations use its suite of software solutions, which includes church management, online giving, financial accounting, digital engagement, and background screenings, according to the announcement.
Chicago-based William Blair served as lead financial advisor to Ministry Brands, along with Credit Suisse and FT Partners.
RCP is a private investment firm focused on thematic investing in global, middle-market financial services businesses in five sectors: depositories and finance companies; asset and wealth management; insurance; capital markets, and financial technology/payments. The firm was founded in 2013 by Milton Berlinski, Peter Aberg and Alex Chulack.
